Rather than dismiss the trend of lower yields in tsy's as more likely to stop at 3.32, perhaps we should have focused our analysis on what yields might do on the upside!  For now, however, both MBS and the 10yr movements are simple if not elegant examples of the technical levels we discussed this AM.

You get resistance from the downtrend at the red circle and resistance at 101-27 at the white circle...

Tsy's are worse off today...  In fact, yields are approaching the unfriendly side of their trend...  We watch, wait, and place bets on where the next bounce will be...  I think we break upside support in 10yrs, but stay under 3.38+ support.  Any takers?  (just opinion, you're free to disagree)  Any other bets?

Oh yeah, and MBS'll probably have to follow suit to some extent meaning some lenders may reprice for the worse if things don't improve quickly.  Especially if you're dealing with a lender that has a historical predisposition to pay attention to the yield curve in conjunction with MBS.